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Copyright 1999 The Columbus Dispatch  
The Columbus Dispatch

September 30, 1999, Thursday

SECTION: NEWS, Pg. 8C

LENGTH: 572 words

HEADLINE: HOUSE APPROVES BILL TO REIMBURSE CHILDREN'S HOSPITALS FOR TRAINING

BYLINE: Mark D. Somerson, Dispatch Medical Reporter

BODY:


Dozens of children's hospitals nationwide are a step closer to collecting government funds for training doctors -- something adult-care hospitals have done for decades.

The U.S. House of Representatives passed a bill Tuesday night that would pay $ 565 million over two years to reimburse children's hospitals for training medical residents.

"This is good news,'' said Morna Smith, director of child advocacy and community relations at Children's Hospital in Columbus. "To have the whole House say it is a legitimate concern is something.'' A similar bill is being considered in the Senate.

After graduating from college, medical students pay tuition to attend a four-year school. After graduating from medical school, hospitals pay them to train there.

The training, depending on the specialty, lasts three to eight years and costs teaching hospitals tens of millions of dollars annually. Getting some of that money back is a tricky proposition for teaching hospitals in general and a particular problem for children's hospitals.

A loophole in the federal graduate-medical-education law keeps most independent children's hospitals from being fully reimbursed.

How bad is the disparity between adult and children's hospitals?

About 500 doctors served residencies at Ohio State University Medical Center last year. For training them, Ohio State received $ 25 million from the federal government -- about $ 50,000 per resident.

Across town at Children's Hospital, about 150 doctors trained last year. Children's received about $ 34,000 -- $ 227 per resident.

Under the proposal, Children's in Columbus would receive about $ 7 million a year. The hospital spends about $ 11 million a year to train residents, administrators say.

"Financially, we are strapped on a year-to-year basis to take care of all the kids in this community,'' said Keith Goodwin, Children's chief operating officer. "This additional funding will give us more flexibility to do more mission-driven things.''

About 60 independent children's hospitals nationwide train residents; six are in Ohio.

When the federal reimbursement plan was created, a number of sources, including insurance companies, contributed to the pot of money. The main source was Medicare.

Over the years, most of the other sources have dropped out, and Medicare is left to provide about $ 7 billion annually.

Medicare patients are typically senior citizens who aren't treated at children's hospitals. Thus, Medicare money used to reimburse teaching hospitals doesn't flow significantly to children's hospitals.

Medicaid funds, which are funneled through state government for treatment of low-income people, also provide for graduate medical education, and both adult-care and children's hospitals are reimbursed. Smith said those funds have been cut over the years.

The bill passed Tuesday was one of two introduced this year in Congress to provide a quick fix. Hospital administrators and legislators are seeking a more-lasting overhaul.

The House and Senate bills are sponsored by Democrats and Republicans. The House bill would provide $ 280 million in the first year and $ 285 million in the second for children's hospitals, including about $ 30 million annually for Ohio's hospitals. The Senate bill would extend payments to four years.

The funding would come from discretionary spending in the federal budget, not the Medicare trust fund.

LOAD-DATE: October 1, 1999




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